Miniso is sprinting towards becoming a highly globalized super brand.
Miniso (MNSO:NYSE; 9896:HK), the collection store for lifestyle goods, released its financial results for the fourth quarter of 2023 on March 12. The company achieved a total revenue of CNY 3.84 billion in the fourth quarter, marking a 54% year-on-year growth and a 1.3% quarter-on-quarter increase, setting a new record for quarterly revenue.
Simultaneously, through enhanced precision management and operational efficiency, Miniso achieved a historic high gross profit margin of 43.1% this quarter, representing a 3.1 percentage point increase compared to the same period last year. With the upgraded brand strategy and high growth in overseas operations, the adjusted net profit for the fourth quarter surged to CNY 660 million (Non-IFRS), marking a 77% year-on-year increase and reaching a historical high. The adjusted net profit margin also rose to 17.2%, an increase of 2.2 percentage points compared to the previous year.
Ye Guofu, the founder, chairman, and CEO of Miniso, stated, "We have concluded 2023 with another strong quarter, setting new records for all key performance indicators, including revenue, gross profit margin, and net profit. Revenue soared by 54% to CNY 3.84 billion, driven by a 32% growth in same-store sales in China and a 19% increase in same-store sales in overseas markets. Revenue from overseas markets reached CNY 1.494 billion, reflecting a 51.4% year-on-year growth, primarily due to a 15.9% increase in the average number of overseas stores and a 30.7% rise in average per-store revenue."
These strong results demonstrate Miniso's significant progress towards becoming a highly globalized super brand.
Miniso, with its robust supply chain capabilities, consumer-oriented approach, and steadfast globalization strategy, has expanded into 107 countries and regions globally. As of December 31, 2023, Miniso operates 6413 stores worldwide, with 3926 stores in China, marking a net addition of 601 domestic stores in 2023, and 2487 stores overseas, representing a net addition of 372 international stores in 2023. Looking ahead to 2024, Miniso anticipates a net increase of 350-450 domestic stores and a net increase of 550-650 overseas stores.
On November 10, 2023, following the opening of the blind box-themed store on Shaftesbury Avenue at the end of September, Miniso's flagship store in the prime location of Oxford Street, London, officially opened, becoming the largest store in the UK to date.
The flagship store, predominantly themed in pink, incorporates elements of British urban culture in its design, featuring attention-grabbing London Underground carriage scenes at the entrance. Through these immersive design elements, Miniso rapidly establishes a deeper emotional connection with consumers. Additionally, the store offers over a thousand trendy lifestyle products, including popular blind box and figurine series from renowned IPs such as Sanrio and Disney. By creating a wide range of IP collaboration products and innovative store experiences, Miniso has constructed a unique and enjoyable "IP paradise", providing consumers with an immersive shopping experience.
"We deeply understand that organizational capability is fundamental for international expansion. To achieve true globalization at a local level, whether in terms of products or local store operations, we are now beginning to establish our own brand overseas. Understanding and adapting to the needs of local consumers, as well as comprehending the economic, cultural, and even religious aspects of the countries, is a significant realization for us," shared Liu Xiaobin, Vice President and Chief Marketing Officer of Miniso, at the "GoGlobal 2023 Forum" hosted by EqualOcean, a top global think tank for globalization expansion.
Looking to the future, for the two months ending on February 29, 2024, Miniso expects a year-on-year growth of approximately 13% in Gross Merchandise Volume (GMV) for its offline stores in China and a year-on-year growth of about 40% in GMV for its overseas operations.
At the time of this report, Miniso's stock is trading at USD 17.92 per share, with a total market value of approximately USD 5.69 billion.